Is Crypto Bottom fully integrated? CEO of $5,100,000,000 Digital Asset Fund Says Industry ‘Stresses’ Peaked in Q2

CEO of crypto fund Pantera Capital, Dan Morehead, thinks the worst of the crypto downturn may be over.

Morehead, whose company manages assets totaling around $5.1 billion, says the worst of the crypto crash happened in May and June when tensions in the system peaked.

“I think we are really close to the end. In any leverage situation and especially with DeFi [decentralized finance] smart contracts, things are liquidated pretty quickly.

And the market has been down for eight months. The peak was in November, so whatever strains we were going to see in the system, they basically peaked in May and June. We already have companies that are in compulsory liquidation.

It’s like we’ve seen it all. Markets can start trading on fundamentals again.

The CEO of Pantera Capital said that during the worst months for the crypto industry this year, almost all decentralized finance (DeFi) protocols performed well and it was the centralized crypto lenders that failed.

“There are a lot of blockchain skeptics and many of them promote the idea that DeFi has failed. And that’s really not true. There are certainly a few flaws in the blockchain ecosystem, but almost all of them are centralized lending counterparties. Which, you know, are basically banks.

Some of these entities operated as banks, accepting short-term deposits as long. And then you had this old-fashioned run on the riverbank. And people wanted their money now, and they were invested in things that had no cash.

It’s really basically the centralized lending companies that have failed and almost all DeFi protocols have worked very well.

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